While the PIIGS do all the squealing in the blood splashed headlines, much bigger countries are in real trouble. Our own budget deficit matches Spain's. With our public sector spending around 44% of GDP any cuts to it will shrink GDP, necessitating more cuts, creating a downward slide in GDP. The willingness of our trading partners to finance all of this foolishness is disappearing, and our politicians show no tendency to make the dramatic cuts necessary, so the only option left is to ride our currency into the ground through Quantitative Easing (digital money printing).
France’s Finances Are ‘No Better’ Than Spain’s, O'Neill Says - Bloomberg: www.bloomberg.com/news/2011-03-31/france-s-finance....html
http://chum.ly/n/7d9c82
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